Support and resistance are one of the highly rated and most profitable trading tools when it comes to anticipating market movements. Almost every trading strategies out there use some sort of support and resistance. Another fact about support and resistance is that they tend to works better on higher time frames especially in the daily chart.

Which mean price has to be test support or resistance in the near past. Have look at the 4-Hour gold chart below. According to the above chart, you can see that there is a level comes from the daily chart which acts as a resistance in past. But on the 4-hour we can see that price again bounce from that daily resistance level and this confirms this resistance is valid and can look for trades in future.

Just like that before looking for any trades we have to confirm the validity of the support and resistance. So what are the confirmations that we can use to find the price movement around support or resistance?

Have a look at the marked bullish engulfing candlestick pattern in the above chart. Why this candle is important for us? There are two reasons, one is Bullish engulfing pattern indicate buying pressure and the second one is it occurred at daily support level which is a higher probability area to look for trade opportunities.

With all these confluences in mind, we place stop-loss few pips below the bullish engulfing pattern and we use 2R for the take profit. Just like that, you can also use the pin bar as your entry technique. Have a look at the chart below,. Read our Ultimate Guide to the RSI indicator to learn more about the RSI Indicator. Before that keep in mind RSI over-bought and over-sold is not trading signals, But if you can combining RSI over-bought and over-sold with price actions, then you can have a small edge over the market.

Have a look at the chart below, first, you can see that price fell after the RSI overbought signal and the same thing happened again after the RSI over-sold signal — price move higher. Now the question is how to catch these movements? The breakout strategy comes very handily in this kind of scenarios.

Why we wait for a breakout? By waiting for the breakout we can increase the probability of our trade. According to the above chart first, we wait for RSI over-bought signal then we wait for local structure level to be broken to the downside. Now all we have to do is place our orders, right? As the above chart showed we placed sell orders after the breakout and placed stop-loss few pips above the moving average.

We use 2R for the take profit. Next, I have a question for you. If you like any of these trading strategies, How you are going to interpret these strategies to your trading career? Just head over to any currency pair and going to trade these strategies , is that what you are going to do?

If you like any of these strategies, I highly recommend you go over a few historical chart check whether these trading strategies are going to work or not. Also, make sure to check whether these strategies are suits for your personality or not. Personality check is very important. Because you cannot profit from any trading strategy which is not suited for your personality. Just like that successful forex trading involve unique sets of skills, and anyone can develop that skill.

All you have to learn is how profitable traders THINK and what sets them apart from the rest. Well, there is no secret. Yuan Byeajee — A successful trader — has an article on The Thinking Process of Highly Profitable Traders. Read this article to learn more about how successful traders think. Also, consider reading the Trading in the Zone by Mark Douglas.

This is a good and must-read trading book for any trader. Your email address will not be published. Save my name, email, and website in this browser for the next time I comment.

We Are… Trade Revenue Pro. We specialize in reverse trading. More Over Our Trading Technique Enable Everyone, Even Novice Forex Traders to Recognize and Ride the Trend Reversals with Higher Risk to Reward Ratio.

Trade Article. Daily Time Frame Forex Trading Strategy 3 Ways to Trade Daily Chart. Here are what we are going to talk today. For this, we are going to use Period EMA and 9-Period EMA. Here is how to filter out the trending market using these two moving averages.

Leave a Reply Cancel reply Your email address will not be published. Conversely, a strategy that has been discounted by others may turn out to be right for you. Therefore, experimentation may be required to discover the Forex trading strategies that work. It can also remove those that don't work for you. One of the key aspects to consider is a time frame for your trading style.

There are several types of Forex trading strategy styles from short timeframes to long timeframes. These styles have been widely used over the years and still remain a popular choice from the list of the best Forex trading strategies this year.

The best Forex traders always remain aware of the different styles and strategies in their search for how to trade Forex successfully. A lot of the time when people talk about Forex trading strategies, they are talking about a specific trading method that is usually just one facet of a complete trading plan.

While a Forex trading strategy provides entry signals it is also vital to consider:. Scalping - These are very short-lived trades, possibly held just for just a few minutes.

This strategy typically uses low time-frame charts, such as the ones that can be found in the MetaTrader 4 Supreme Edition package. This trading platform also offers some of the best Forex indicators for scalping. The Forex-1 minute Trading Strategy can be considered an example of this trading style.

Day trading - These are trades that are exited before the end of the day. This removes the chance of being adversely affected by large moves overnight. Day trading strategies are common among Forex trading strategies for beginners. Trades may last only a few hours, and price bars on charts might typically be set to one or two hours. Swing trading - Positions held for several days, whereby traders are aiming to profit from short-term price patterns.

A swing trader might typically look at bars every half an hour or hour. Positional trading - Long-term trend following, seeking to maximise profit from major shifts in price.

A long-term trader would typically look at the end of day charts. The best positional trading strategies require immense patience and discipline on the part of traders.

It requires a good amount of knowledge regarding market fundamentals. Below is a list of trading strategies regarded to be some of the top Forex trading strategies around and how you can trade them, so you can try and find the right one for you. Did you know that you can learn to trade step-by-step with our brand new educational course, Forex , featuring key insights from professional industry experts?

Click the banner below to register for FREE! One of the latest Forex trading strategies to be used is the pips a day Forex strategy which leverages the early market move of certain highly liquid currency pairs. The GBPUSD and EURUSD currency pairs are some of the best currencies to trade using this particular strategy.

After the 7am GMT candlestick closes, traders place two positions or two opposite pending orders. When one of them gets activated by price movements, the other position is automatically cancelled. The profit target is set at 50 pips, and the stop-loss order is placed anywhere between 5 and 10 pips above or below the 7am GMT candlestick, after its formation. This is implemented to manage risk. After these conditions are set, it is now up to the market to do the rest.

Day trading and scalping are both short-term Forex trading strategies. However, remember that shorter-term implies greater risk due to the nature of more trades taken, so it is essential to ensure effective risk management. Below is a screenshot of the MetaTrader 4 trading platform provided by Admirals, showing the EURUSD H1 chart from the Zero. MT4 account:. Source: Admirals MetaTrader 4, EURUSD, H1 chart between 26 May to 31 May Accessed: 27 April at am BST - Please note: Past performance is not a reliable indicator of future results or future performance.

The orange boxes show the 7am bar. In some instances, the next bar did not trade beyond the high or low of the previous bar resulting in no trading setup unless the trader left their orders in the market. The effectiveness of the 50 pips a day Forex strategy has not been tested over time and merely serves as a platform of ideas for you to build upon. Past performance is not a reliable indicator of future results.

The best Forex traders swear by daily charts over more short-term strategies. Compared to the Forex 1-hour trading strategy, or even those with lower time-frames, there is less market noise involved with a Forex daily chart strategy. Such Forex trade setups could give you over pips a day due to their longer timeframe, which has the potential to result in some of the best Forex trade setups and potentially some of the most successful trading strategies around.

Daily Forex strategy signals can be more reliable than lower timeframes, and the potential for profit could also be greater, although there are no guarantees in trading.

Traders also don't need to be concerned about daily news and random price fluctuations. The Forex daily strategy is based on three main principles:. While there are plenty of trading strategy guides available for professional FX traders, the best Forex strategy for consistent profits and creating the most successful trading strategies can only be achieved through extensive practice.

Let's continue the list of trading strategies and look at another one of the best trading strategies. You can take advantage of the minute time frame in this Forex strategy. In regards to the Forex trading strategies resources used for this type of strategy, the MACD is the most suitable which is available on both MetaTrader 4 and MetaTrader 5.

You can enter a long position when the MACD histogram goes above the zero line. The stop loss could be placed at a recent swing low. You can enter a short position when the MACD histogram goes below the zero line. The stop loss could be placed at a recent swing high. Below is an hourly chart of the AUDUSD. The red lines represent scenarios where the MACD histogram has gone above and below the zero line:. Source: Admirals MetaTrader 4, AUDUSD, H1 chart between 20 May to 31 May While many Forex traders prefer intraday Forex trading systems due to the market volatility providing more opportunities in narrower time frames, a Forex weekly trading strategy can provide more flexibility and stability.

A weekly candlestick provides extensive market information. Weekly Forex trading strategies are based on lower position sizes and avoiding excessive risks. For this strategy, traders can use the most commonly used price action trading patterns such as engulfing candles, haramis and hammers. One of the most commonly used patterns in Forex trading is the hammer which looks like the image below:. The chart below shows the weekly price action of NZDUSD and examples of the patterns shown above.

Source: Admirals MetaTrader 4, NZDUSD, Weekly chart between 19 August to 31 May Accessed: 27 April at pm BST - Please note: Past performance is not a reliable indicator of future results or future performance.

To what extent fundamentals are used varies from trader to trader. At the same time, the best Forex strategy will invariably use price action. This is also known as technical analysis.

When it comes to technical currency trading strategies, there are two main styles: trend following and countertrend trading. Both of these FX trading strategies try to profit by recognising and exploiting price patterns. When it comes to price patterns, the most important concepts include support and resistance.

Put simply, these terms represent the tendency of a market to bounce back from previous lows and highs. This occurs because market participants tend to judge subsequent prices against recent highs and lows. Therefore, recent highs and lows are the yardsticks by which current prices are evaluated. There is also a self-fulfilling aspect to support and resistance levels.

This happens because market participants anticipate certain price action at these points and act accordingly. As a result, their actions can contribute to the market behaving as they had expected. Did you know that you can see live technical and fundamental analysis in the Admirals Trading Spotlight webinar?

In these FREE live sessions, taken three times a week, professional traders will show you a wide variety of technical and fundamental analysis trading techniques you can use to identify common chart patterns and trading opportunities in a variety of different markets.

Sometimes a market breaks out of a range, moving below the support or above the resistance to start a trend. How does this happen? When support breaks down and a market moves to new lows, buyers begin to hold off. This is because buyers are constantly noticing cheaper prices being established and want to wait for a bottom to be reached. At the same time, there will be traders who are selling in panic or simply being forced out of their positions or building short positions because they believe it can go lower.

The trend continues until the selling is depleted and belief starts to return to buyers when it is established that the prices will not decline further. Trend-following strategies encourage traders to buy the market once it has broken through resistance and sell a market once they have fallen through support.

In addition, trends can be dramatic and prolonged, too. Because of the magnitude of moves involved, this type of system has the potential to be the most successful Forex trading strategy. Trend-following systems use indicators to inform traders when a new trend may have begun, but there's no sure-fire way to know of course.

Here's the good news: If the indicator can establish a time when there's an improved chance that a trend has begun, you are tilting the odds in your favour to use the best Forex trading system. The indication that a trend might be forming is called a breakout. A breakout is when the price moves beyond the highest high or the lowest low for a specified number of days.

For example A day breakout to the upside is when the price goes above the highest high of the last 20 days. Trend-following systems require a particular mindset, because of the long duration - during which time profits can disappear as the market swings. These trades can be more psychologically demanding. When markets are volatile, trends will tend to be more disguised and price swings will be greater.

Therefore, a trend-following system is the best trading strategy for Forex markets that are quiet and trending. A good example of a simple trend-following strategy is a Donchian Trend system. Donchian channels were invented by futures trader Richard Donchian , and is an indicator of trends being established. The Donchian channel parameters can be tweaked as you see fit, but for this example, we will look at a day breakout. Source: Admirals MetaTrader 4, EURJPY, Daily chart between 18 September to 31 May You can get the Donchian Channel indicator completely FREE in the Admirals Supreme Edition package.

It's called Admiral Donchian. To upgrade your MetaTrader platform to the Supreme Edition simply click on the banner below:.

Trading forex on the daily charts has many advantages. It requires less time analysing charts and filters out a lot of market noise when compared to lower chart timeframes. However, when using a daily forex strategy there is going to be less buy and sell signals. You therefore need to make sure you are using a trading strategy that can make the most of any signals there occur. I will take a look at a forex daily strategy based on trend trading that can catch some big moves when implemented correctly.

You will only need a couple of minutes each day to see if there is a valid entry or exit signal. There can be some big forex market moves that reach hundreds of pips in just a couple of days on the daily chart timeframe. You would need to take a lot of successful trades if you were using a scalping strategy on the lower chart timeframes to make a similar amount of pips.

This can cost you time and money in terms of brokers fees such as the spread, commission, swaps and slippage. I find that technical indicators tend to be more reliable with daily forex trading strategies. They can be less susceptible to small movements. I can see lots of false signals when using forex indicators such as the MACD or Stochastics on the lower chart timeframes, but find the daily charts remove some of this unnecessary market noise. Your success with trading the daily forex charts is likely to depend on your money management.

If you are using a poor risk to reward ratio, then one bad trade can wipe out consecutive winners. I would instead be looking to cut losing trades short and let my winning trades run. This is especially beneficial on the daily charts as moves can be very big so it is a shame to get out too early. I might use a break even to lock in a good trade and use a trailing stop loss to maximise its potential. As mentioned, if you time your entry and exit well, you can catch some long-term trends on the daily forex charts.

There are plenty of indicators for identifying the trend direction of a currency pair, including moving averages and the ADX.

Once you have established if there is an uptrend or downtrend, you could time your entry using a pullback indicator such as the CCI or RSI. I would then confirm the trade by looking for candlestick patterns whilst being aware of any fundamental analysis that may impact the direction of the market.

Price has also broken through a resistance level that has now become support. The CCI is below suggesting the market is oversold. There are a few continuation patterns to confirm bullish market sentiment. We could have placed the stop loss below the SMA which would have been around pips. Considering this trade went up almost 4, pips, there was plenty of opportunity to take profits along the way. You will also see the CCI became oversold again and again throughout the upwards move, presenting additional entry opportunities into the daily trend.

Price is below both of the moving averages and there is a recent support level which has been breached and become resistance. The CCI is also overbought suggesting the buyers are running out of momentum and price will continue to fall which it does. This is confirmed by a hanging man candlestick pattern.

Stop loss could again have been on the other side of the SMA which would have been around pips. This downtrend continued for over 3, pips which gives an excellent risk to reward ratio.

Yes, daily forex strategies are some of my favourite for the reasons mentioned above. Primarily, I find the buy and sell signals on the daily forex charts to be more reliable. I also like the fact that less time is needed to sift through charts conducting technical analysis and price action analysis to identify setups as you would have to when day trading.

You might want to start on a forex demo account to begin with so you can practice your trading strategies risk free and build some confidence. You can get a demo account from most forex brokers at no cost. Self-confessed Forex Geek spending my days researching and testing everything forex related. I have many years of experience in the forex industry having reviewed thousands of forex robots, brokers, strategies, courses and more. I share my knowledge with you for free to help you learn more about the crazy world of forex trading!

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A chart uptrend will eventually turn into a downtrend, and the opposite is true. One potentially beneficial and profitable Forex trading strategy is the 4-hour trend following strategy which can also be used as a swing trading strategy. One key thing about breakout price levels is that many big players use them so the levels can have added impetus. Therefore, recent highs and lows are the yardsticks by which current prices are evaluated. If you are using a poor risk to reward ratio, then one bad trade can wipe out consecutive winners. Skip to content Forex Brokers Forex Courses Forex Robots Forex Signals Forex Systems Forex Tools Forex Trading. By waiting for the breakout we can increase the probability of our trade.

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